Pizza Hut Swot Analysis

Price

Price refers to the amount of a particular menu items will charge to customers by the firm. The purpose of setting a price is in order to offer a product that the customers prefer. The pricing strategy also difficult to decide as the customer consider that if charge a high price for a product, it takes advantages on it.

Pizza Hut uses the skimming pricing when they set the price for each menu item. Pizza Hut usually use the good quality of ingredients to create a menu, thus the budget of selecting the ingredients is quite high.

Compared with the main competitors, which is Domino’s Pizza, the price of the each product is much more affordable with a big portion size of a pizza. Even though the Pizza Hut uses the skimming pricing, many

For example, during this May Pizza Hut offers the privilege card for the customer to enjoy the buy one free one special, either in Malaysia outlets or in other country. For the students in study, they will also get the student price with a discount of 10%.

In Pizza Hut, there are some advantages in skimming pricing strategy:

• Firstly, it can help to recover the future price which is related to recommend a new product.

• Besides that, it helps to perceive quality of the product. Most of the customers are very concerned about the hygiene and cleanliness in Pizza Hut. If customers cannot meet their satisfaction due to poor hygiene, then it will directly affect the revenue in a particular place.

• On the other hand, it also helps to attract the customer’s status conscious. For example, customers are willing to buy a higher price product.

As Pizza Hut concentrate on their pricing strategy, they also make the product mix based on the portion size of the pizza. The different type of the pizza have different price as it be categorized to 6-inches for regular size, 9-inches for medium size and 12-inches for large size of

This is due to the ads use a different route and promotion discounts or offers on their products to attract their customers during different festivals. For example, they come out with special flavour’s product during Chinese New Year to achieve their customers’ demand. Not only that, family package is launched when during semester break holiday. This will attract lots of family to have meal in Pizza Hut because it is promote with reasonable price.

Another than that, Pizza has promote their mushroom soup and garlic bread by having Wednesday promotion which customers can purchase them for only RM1. Not only have that, customers can free to upgrade their pizza to large when they order Pizza Hut online. At the same time, pizza hut does several enterprise discounts as well and gives discounts to corporate customers.

Lastly, Pizza Hut has promoted their products through several social media. Pizza Hut has implemented a broad advertising program to promote their products across Facebook, Twitter and YouTube. Pizza Hut has a lot of media partners and has a renowned television advertising which can strongly attract their customers. The internet is one of the most important inventions of the century. Through internet, Pizza Hut has successfully promoted their products to customers around the